Raj borrowed a sum of 16000 from a finance company at 10% per annum, compounded half-yearly. What amount of money will discharge his debt after 3/2 years.
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Verified answer
Given:Principal = 16,000
rate = 10% per annum, compounded semi-annually
term = 3 1/2 years
A = P (1 + r/n)^nt
A = 16,000 (1 + .10/2)²*³.⁵
A = 16,000 (1.05)⁷
A = 16,000 (1.407)
A = 22,512
Raj has to pay 22,512 to discharge his debt after 3 1/2 years.